Arvind Fashion May Rally 46%, Says Motilal Oswal As It Initiates Coverage With A 'Buy'

With improving earnings visibility, steady margin expansion, and rising return ratios, Arvind Fashions is well positioned as a high-quality compounding story in India’s branded fashion space. Its balanced portfolio, scalable model, and strengthening financial metrics offer a compelling risk-reward profile..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Motilal Oswal initiates coverage on Arvind Fashions Ltd. with a 'Buy' rating and a target price of Rs 725, signaling a 46% upside from the current market price of Rs 496. The brokerage highlights that Arvind Fashions, part of the Lalbhai Group, has successfully transitioned from a post-Covid consolidation phase to a profitable growth trajectory anchored by five marquee brands—U.S. Polo Assn. (USPA), Arrow, Tommy Hilfiger, Calvin Klein, and Flying Machine..Valuation and view Arvind Fashion stands at an inflection point, transitioning from consolidation into profitable scale-up with a sharper focus on five power brands. This phase of growth will be driven by scaling up core brands, expanding adjacencies profitably, and driving operating leverage. USPA is evolving into a full lifestyle brand, with a third of its revenue coming from non-apparel, while Tommy and CK are strengthening their premium positioning with mid-teen Ebitda margins. Arrow and Flying Machine are entering a scale-up phase through sharper brand positioning and modern retail formats. Collectively, these initiatives are expected to drive ~13% revenue CAGR and ~190bp margin expansion over FY26-28E, taking pre-Ind AS Ebitda margin to 10.3% by FY28E..Click on the attachment to read the full report:.'Buy' Amber Enterprises Shares Maintains Motilal Oswal Despite Near-Term Headwinds— Check Revised Target Price.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Arvind Fashion May Rally 46%, Says Motilal Oswal As It Initiates Coverage With A 'Buy'

Arvind Fashion's balanced portfolio, scalable model, and strengthening financial metrics offer a compelling risk-reward profile.

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